California

More than two decades after California first legalized marijuana for medical use with Proposition 215, the Golden State has enacted laws and regulations to govern the medicinal and adult-use cannabis markets. These laws are far-reaching and impact every aspect of how cannabis operators conduct business.

Initially, the law established three state agencies as the main licensing and regulatory authorities for cannabis business: the Bureau of Cannabis Control within the Department of Consumer Affairs, the Manufactured Cannabis Safety Branch within the Department of Public Health, and the CalCannabis Licensing Branch within the Department of Food and Agriculture.

In July of 2021, these regulatory agencies were consolidated into the Department of Cannabis Control. The new department promptly issued initial regulations which grouped together and renumbered the three sets of regulations in the California Code of Regulations. Other state agencies, such as the State Water Boards and the Department of Fish and Wildlife, play a role in regulating cannabis activity as well.

California has a dual licensing system, meaning that state-issued licenses are required to operate a commercial cannabis businesses; however, only businesses with local authorization are eligible to obtain a state license. Additionally, each city and county in California has its own unique rules governing commercial cannabis activity.

Below is a selection of California’s state laws and regulations for cannabis, as well as other resources.

STATE LAWS

“California Cannabis Laws and Regulations: 2022 Edition” Book by Omar Figueroa

Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) Provisions in the Business and Professions Code

Cannabis Tax (Revenue and Taxation Code §§ 34010 – 34021.5)

STATE REGULATIONS

On November 7, 2022 the California Department of Cannabis Control (DCC) adopted its final comprehensive regulatory package to govern the State’s cannabis industry. The regulations went into effect immediately and apply to both medical and adult-use commercial cannabis activity, so it’s important that licensees, potential licensees, and anyone else who these regulations impact become familiar with them right away.

As a public service, we have combined several PDFs released by the DCC in November 2022 into a single, searchable-text PDF containing the text of the regulations, two new guidance documents, and a table comparing the previous emergency regulations with the final consolidated regulations. The document can be downloaded here.

DCC Consolidated Regulations Packet November 2022

In addition to the DCC regulations above which deal with cannabis licensing and compliance in general, regulations issued by the California Department of Tax and Fee Administration (CDTFA) which relate to cannabis taxes can be found here (but note: new and amended emergency tax regulations related to excise taxes were adopted on January 30, 2023 and can be accessed here).

STATE LICENSING AGENCY

Department of Cannabis Control

OTHER STATE REGULATORY AGENCIES

Department of Tax and Fee Administration

Department of Pesticide Regulation

State Water Board

Department of Fish and Wildlife

Department of Insurance

STATE REGULATIONS ARCHIVE

Department of Cannabis Control Consolidated Emergency Regulations (Sept. 2021)

Department of Cannabis Control Disciplinary Guidelines (Sept. 2021)

OCal (Comparable-to-Organic Certification Program) Final Regulations for Cultivators (2021)